A new nematode species recovered from the laboratory culture of Drosophila melanogaster is described and illustrated. The mass reproduction of Panagrellus levitatus sp. n. in the fly culture occurred several times and resulted in a significant reduction of the fly population. Nematode outbreaks happened after the introduction of D. melanogaster to the culture from natural sources. The new species is morphologically similar to P. ulmi. Partial LSU rDNA and SSU rDNA sequences were obtained and subjected to phylogenetic analysis that demonstrated the affinity of the new species with Panagrellus sp. 'MC2014' from a red palm weevil. For the first time, the dauer juveniles of Panagrellus were described.